New York, NY, United States (4E Sports) – Nike has the option to keep Kevin Durant as its endorser as the player’s contract states he can’t legally choose another brand if Nike matches an offer.
Durant’s representation Roc Nation Sports informed Nike Wednesday that he has an offer from Under Armour worth between $265 million and $285 million over 10 years.
The deal includes Under Armour stock and other incentives, such as a community center built in his mother’s name. The exact worth of the entire deal will not be known for some time.
Nike’s last offer gives Durant a base and a minimum royalty guarantee that would equal no less than $20 million a year.
On Aug. 13, Durant went to Under Armour’s headquarters and was said to be blown away by its pitch.
Scheduled to be there only a couple hours, Durant stayed the day and worked out in its shoes.
Because Under Armour has such a small basketball business, the company has to guarantee Durant his money up front, instead of the typical shoe deals of a minimum guarantee plus up to five percent royalty.
Although Under Armour has given investors guidance that it might hit $3 billion in revenues this year, only about 1 percent of that is from basketball shoes.
Under Armour CEO Kevin Plank felt Durant could accomplish two major goals: growing its small shoe business and improving its international presence that has been lagging behind its North American sales growth.